In 2022, OLED screens will not appear much on smartphones

Counterpoint Research’s smartphone sales forecast by screen type says that OLED’s share in smartphone display types globally is expected to grow only 2% YoY in 2022 to 44 %. Previously, OLED’s market share increased by 10% over the same period in 2021 to 42%.

The slow growth of OLED screen is directly related to the downward pressure on the average selling price (ASP) of 5G smartphones. Although the prices of critical components such as chipsets are increasing due to shortages in supply, OEMs have been forced to reduce shipping costs of finished products due to increasing market competition and slow consumption. stagnation due to the global economic recession. As a result, manufacturers trying to cut costs seem to be affecting the display. According to Counterpoint’s Handset Model Tracker, the adoption rate of OLED screens for 5G smartphones in the fourth quarter of 2021 was 80%, down 2% year-on-year. This is especially noticeable given that to date, 5G models have mainly driven the expansion of OLED screen usage.

The supply-demand and price trends of OLED panels themselves have recently become obstacles. OLED is divided into the relatively inexpensive “hard OLED” and the high-end “flexible OLED” that have increased flexibility and power. In low- to mid-range smartphones, the panel is directly replaceable LCD screen is a solid OLED, but its global supply has now reached its limit. This is because display manufacturers are focusing their investments on flexible OLEDs instead of rigid OLEDs. On the other hand, the price of flexible OLED, which is favored for high-end models, dropped so much around 2020 that its adoption rate skyrocketed. Recently, however, even this downtrend has come to a standstill.

However, in the long term, the trend of OLED screens replacing LCD screens in smartphones is unlikely to change. This is closely related to the growth of the 5G market. Since 5G phones consume battery faster than LTE phones, OLEDs are preferred because they are more power efficient than LCDs under normal conditions. Comparing smartphones sold in Q4/2021 by network type, the adoption ratio for LCD and OLED screens in LTE smartphones is 82:18, but for 5G smartphones, the ratio is 82:18. is 20:80.

As such, the shift to smartphone OLED will continue in the long term, but its speed will depend on various factors – the recovery of the consumer economy, supply stability of key parts and discount flexible OLED. Since the above conditions are unlikely to be met in 2022, it will be difficult for many smartphone manufacturers to drastically expand the use of OLED in the near future.

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